Asian stock markets rose slightly on Friday as investors awaited Federal Reserve Chair Jerome Powell’s address at the annual Jackson Hole symposium. Markets are keenly watching for any hints from Powell regarding a potential rate cut in September and the short-term policy outlook, following recent indications of a softening labor market.
S&P 500 futures were down 0.11 percent, while Nasdaq futures fell 0.20 percent as of 6:21 GMT. The cash gauge on Wall Street is on a five-day losing streak, which has left it on track for its biggest one-week decline this month.
South Korea’s Kospi index leads gains
In the Asian stock market, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.2 percent, extending its rise to 1.6 percent so far this month. South Korea’s Kospi index led the gains, climbing 1 percent, while China’s blue-chip CSI 300 Index was on track for a third straight day of increases.
The Nikkei 225 fluctuated between gains and losses, finishing up 0.1 percent. Meanwhile, the yen held steady at 148.45 against the U.S. dollar after data showed Japan’s core consumer prices in July exceeded analysts’ expectations and the Bank of Japan’s inflation target.
Fed officials signal rate cut caution
The U.S. dollar index, which tracks the greenback against a basket of major trading partner currencies, remained at 98.60 after four consecutive days of gains, as traders analyzed speeches from Fed officials who seemed hesitant about a potential interest rate cut next month.
Traders had increased expectations for a September rate cut after a surprisingly weak payrolls report earlier this month and consumer price data showing limited upward pressure from tariffs. However, market bets eased slightly following the release of minutes from the Fed’s July meeting.
According to the CME Group’s FedWatch tool, traders now see a 75 percent chance of a September cut, down from 82.4 percent on Thursday. The most likely outcome is that Powell will not offer any clear guidance on the Fed’s next move ahead of key non-farm payrolls and CPI data. Given current market conditions, there is a risk of a stronger U.S. dollar, particularly if Powell challenges the market’s pricing of a 25-basis-point cut.
Read: Dubai 24-carat gold prices lose AED1.5 as dollar firms ahead of Powell’s remarks
Commodities market down
As stock markets globally traded mixed, oil prices dipped, with Brent crude last trading down 0.3 percent at $67.45 per barrel, following strong gains on Thursday after Russia and Ukraine blamed each other for a stalled peace process and U.S. data indicated robust demand in the world’s largest oil-consuming country.
Gold also slipped slightly, with spot bullion down 0.1 percent at $3,334.20 per troy ounce.
